The U.S. freight railroad industry is forecast to see revenue increases of 3.5% annually in nominal terms through 2022, according to Freight by Rail: United States, a report recently released by Freedonia Focus Reports. Continuing expansion in U.S. manufacturing activity and growth in U.S. trade activity will drive demand for rail freight transportation.

Notably, output of chemicals and allied products, one of the most profitable railroad cargos and a leading product shipped by rail, is projected to rise 3.6% annually in value terms to 2022. However, production of motor vehicles in volume terms, another high-profit cargo item for rail carriers, is projected to increase only moderately over that span due to robust gains over the 2007 to 2017 historical period. In addition, 2018 and late 2017 recorded elevated levels of import activity ahead of new tariffs taking effect. Consequently, these elevated levels are unsustainable over the forecast period.

These and other key insights are featured in Freight by Rail: United States. This report forecasts to 2022 US freight railroad revenues in nominal U.S. dollars as well as volume hauled in ton-miles. A ton-mile represents one ton of freight carried one mile.